Landlords capitalising on unstable market

A survey of buy-to-let landlords carried out by i-PropertyAssets has revealed that 70% view the current property market conditions as an opportunity to expand their portfolios.

The survey of sister company Property Secrets' 70,000-strong membership base also showed that refurbishment opportunities were the most likely way for a buy-to-let landlord to add to their portfolio with 40% preferring that option.

Repossessions and property auctions were viewed as an opportunity by 30%, while just 12% saw off plan or new build property as a way to expand. The remainder chose commercial, luxury and other options.

Around 50% of landlords surveyed said they expected house prices to fall over the next 12 months, but only 5% expected a 'sharp decline'. Over a third expected no change and 13% anticipated weak growth in the markets in which they were invested.

Over 20% of buy-to-let landlords declared they were not worried by the credit crunch, while 41% were most concerned about mortgage costs and 31% about capital growth. Property investors anticipated a much sunnier outlook in terms of rentals, however, with just 6% concerned about yields. Nearly two-thirds of respondents anticipated growth in rentals in the next 12 months, while only 8% thought there would be a decline.

Peter Bennett, director of i-PropertyAssets, said: "This survey shows confidence remains among intelligent property investors and buy-to-let landlords.

"While it's a given that house prices will fall in some areas, the results of this survey show that there is no real concern about a proper crash. In fact, landlords appear to be looking forward to increasing rents and while they're concerned about the availability of finance do not appear to be worried about their existing portfolios.

"The current credit crunch might be restricting borrowing and buying - but it isn't dampening the appetite to do so amongst property investors."

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